Owning small apartment buildings can lead to big profits in real estate investing.  The simple fact behind this was reported in an article in Kiplinger's, a personal finance magazine.Invest in Small Apartment Buildings  As was stated: "People will always need a place to live."

 That piece in Kiplinger's carr.ed the headline, "Invest in Real Estate."   Of all the different types of real estate assets, passive investing in small apartment buildings has many advantages over the other forms.  No matter what the type of real estate investing, as noted by Kiplinger's, "Investment Fads come and go, but this much is certain: People will always need a place to live."

For a variety of factors, apartment buildings are the place of choice for many to live.  So do not want to commit to buying with a mortgage as they might be moving in a couple of years.  Others do not want to deal with responsibilities of home ownership.  There are as many personal reasons as there are tenants living in an apartment.

Small apartment buildings offer a great deal of flexibility to the investor.  If there are four units or less, it can be purchased as a primary residence.  Since the owner will be living there, the property can be purchased with a small amount down and qualify for a low interest mortgage.  That makes the financing aspect of a small apartment building very attractive as it is much cheaper.

There is also a significant amount of risk mitigation provided by investing in small apartment buildings.  As there is rental income, the costs should be covered.  That prevents a small apartment building from becoming a cash-draining liability.

The magic of compound interest puts time on the side of the small apartment building owner.  As rents in the United States increase an average of 5% annually, that means that the investment income from a small apartment building doubles in less than 15 years.  From that, small apartment buildings quickly become a high yield real estate investing asset.  When the mortgage is paid off, the cash flow becomes even more compelling.

Even with those risk management steps, it is still best to passive invest in small apartment buildings.  Buying into the experience and expertise of a seasoned real estate professional is worth every penny, in addition to being fully tax deductible as a business expense.  As a result, investing in small apartment buildings can take care many needs for the individual.

If purchased as a primary residence, it can provide a place to live.  The increasing rental income makes it an ideal cash flow machine.  As it should increase in value over time, it becomes an appreciating asset for any investment portfolio.  Most important of all, there will also be a demand as "People will always need a place to live."